Get compliant in a jurisdiction

Copy

Introduction

Sales tax registration is essential for establishing your business's legal compliance with tax regulations in that specific area. There are various reasons why registering for sales tax remittance in a jurisdiction is crucial:

  • Legal compliance — Registering for sales tax remittance in a jurisdiction is often a legal requirement once a business meets specific criteria, like reaching a sales threshold or establishing nexus. Failure to register can result in penalties, fines, or legal actions, which can negatively impact the business's operations and reputation.
  • Tax collection responsibility — Upon registration, the business collects and remits sales tax from customers in that jurisdiction. Proper registration ensures that the business fulfills its tax obligations, contributes to the local economy, and complies with tax laws.
  • Avoiding penalties — Failing to comply with sales tax registration can result in severe penalties or interest charges. Registering on time helps businesses avoid these penalties and maintain good standing with tax authorities.

Registering for sales tax remittance in a jurisdiction is not only a legal obligation but also a means for businesses to maintain compliance, avoid penalties, and establish credibility with both authorities and customers.

In the US, Anrok can handle sales tax registration in any state or city that taxes SaaS, including home-rule jurisdictions. For non-resident global jurisdictions in supported countries where you have a taxable product, Anrok can handle the hassle of getting compliant by processing your global tax registration via the non-resident scheme.

 

 

Initiate sales tax compliance in a jurisdiction

For any state where you have a taxable product, Anrok can handle the hassle of getting compliant by processing your sales tax registration and scheduling when you start calculating and remitting sales tax. All you need to do is initiate sales tax compliance in the jurisdiction, then specify your preferred tax calculation date and tax collection method. See How do I know if I need to get compliant?

Try initiating compliance in a jurisdiction in the demo above ☝️

Step 1  Initiate compliance

  1. In the Anrok app CleanShot 2023-07-20 at 12.02.21@2x.png, go to Jurisdictions. Take me there!
  2. Under the Action required tab, select an exposed_status_anrok.png or approaching_status_anrok.png jurisdiction. If you are not exposed or approaching exposure in the jurisdiction you want to register in, you can find it under the All tab.
  3. Review the cause of exposure, then click Get compliant.

Step 2  Complete registration request form

U.S. jurisdiction registration request form

Section 1  General information

  1. Complete the form based on your company's plans for approaching past tax exposure, existing tax account(s), product catalog, and local presence. See Approach your historic exposure.
  2. When you are finished, click Continue.

     

Section 2  Registration

  1. Under 'Which email address should we use to create your online tax account?', select or enter an email for our Registrations team to use for creating and logging into your online tax account.
  2. Under 'Who may we contact for follow-ups related to this registration?', select an email for our Registrations team to use for updates related to your registration in the jurisdiction.
  3. When you are finished, click Continue.

 

Section 3  Filing and remittance

  1. Under 'Select your registration effective date', select the date from which you will be required to file returns for all periods from onwards.
  2. When you are finished, click Continue.

   

Section 4  Tax settings

  1. Under 'Should Anrok begin collecting tax from customers by adding tax to invoices?', select one of the following options:
    • Immediately after the jurisdiction approves my registration and Anrok has access to my Sales tax account — Anrok will begin adding tax to invoices on the same day Anrok is given access to your Sales tax account.
    • Yes, at a specified date — Anrok will begin adding tax to invoices on a date before or after the jurisdiction approves your registration. If selected, for any transactions that occur between your tax calculation date and tax collection date, you will be expected to pay tax on your customer’s behalf.
    • No, Anrok will only calculate tax on transactions. Taxes will be paid by me and not charged to customers — Anrok will not add tax to your customer-facing invoices. If selected, for any transactions that occur in this jurisdiction, you will pay tax on your customer’s behalf.
  2. (Optional) Under 'Advanced settings', select whether you would like to set a custom tax calculation start date. Your tax calculation start date is set to today by default.
  3. When you are finished, click Continue.

Global jurisdiction registration request form

For non-resident global jurisdictions in supported countries where you have a taxable product, Anrok can handle the hassle of getting compliant by processing your VAT/GST/PST/RST tax registration via the non-resident scheme.

Note CleanShot_2024-04-30_at_16.01.40_2x-removebg-preview.png

In some global jurisdictions, you will only see the option to Register with an Anrok trusted partner. Once you submit this form to kick off the process, we'll connect you with a member of Anrok's Global Registrations team who will help you get registered in the jurisdiction. 

From there, the process works much like your other jurisdictions, except the registration itself is managed outside the Anrok app. Once you're remitting, the jurisdiction is managed in the Anrok app alongside all your other jurisdictions' returns.

Section 1  General information

  1. Complete the form based on your company's customer type, product catalog, local presence, plans for approaching past tax exposure, existing tax account(s), and use of inclusive pricing.
  2. Under Do you want Anrok to take care of registering, filing returns, and remitting taxes on your behalf?, select that you would like Anrok to register, file, and remit for you.
  3. Under 'Who may we contact for follow-ups related to this registration?', select an email for our Registrations team to use for updates related to your registration in the jurisdiction.
  4. When you are finished, click Continue.

     

Section 2  Company information

  1. Provide your Primary business website and a Description of goods and services you sell.
  2. When you are finished, click Continue.

 

Section 3  Registration

  1. Complete the form based on your company's registration details (tax identifiers, industry code), projected VAT sales figures, business history, CEO/Co-founder identity verification documents, and additional required registration information.
  2. Under 'Who may we contact for follow-ups related to this registration?', select an email for our Registrations team to use for updates related to your registration in the jurisdiction.
  3. When you are finished, click Continue.

 

Section 4  Remittance details

  1. Under 'Select your registration effective date', select the date from which you will be required to file returns for all periods from onwards.
  2. Agree to the Acknowledgement of tax account access requirement, which gives Anrok authorization to create and administer the jurisdictions tax account on your behalf.
  3. When you are finished, click Continue.

   

Section 5  Tax settings

  1. Under 'When should Anrok begin calculating tax on transactions?', select one of the following 
  2. Under 'Should Anrok begin collecting tax from customers by adding tax to invoices?', select one of the following options:
    • Immediately after the jurisdiction approves your registration and Anrok has access to your Sales tax account — Anrok will begin collecting tax from customers on the same day Anrok is given access to your Sales tax account.
    • Yes, at a specified date — Anrok will begin collecting tax from customers on a date before or after the jurisdiction approves your registration. If selected, for any transactions that occur between your tax calculation date and tax collection date, you will be expected to pay tax on your customer’s behalf.
    • No, taxes will be paid by you and not charged to customers — Anrok will not sync tax calculations to your customer-facing invoices. If selected, for any transactions that occur in this jurisdiction, you will pay tax on your customer’s behalf.
  3. (Optional) Under 'Advanced settings', select whether:
    • Custom tax calculation start date — You would like to set a custom tax calculation start date. Your tax calculation start date is set to today by default.
    • Custom VAT ID validation start date — You would like a VAT ID validation start date that is before your tax calculation start date. Your VAT ID validation start date will match your tax calculation start date by default.
  4. When you are finished, click Continue.

Step 3  Review and submit

  1. Review your registration request's submission details.
  2. When you are finished, click Submit.

Note CleanShot_2024-04-30_at_16.01.40_2x-removebg-preview.png

Once you've initiated compliance in a jurisdiction, our Registrations team will begin processing a sales tax registration in the jurisdiction. This process typically involves establishing a sales tax account for your organization in the relevant jurisdiction. 

Check your email for correspondence from registrations@anrok.com, where we will inform you about potential paper mailings you should be on the lookout for from the jurisdiction containing your sales tax account ID, as well as any other action items you may have. See Check-in on processing registrations.

 

 

Sales tax registration fees

Some jurisdictions charge a processing fee for sales tax registration in a jurisdiction. Once you register for sales tax in any of these jurisdictions, you will see these charges debited from the bank account listed on your Settings page. 

If your bank has debit blocks to prevent unauthorized ACH payments from being drawn, please remove any filters for the states in which you are registering. See Jurisdiction ACH ID list.

The table below lists the states that currently charge fees upon sales tax registration and the amounts:

Jurisdiction Sales tax registration fee

Arizona

$12.00

Colorado

$63.00 - $77.00

Connecticut

$100.00

Hawaii

$20.00

Indiana

$25.00

Nevada

$15.00

Rhode Island

$10.00

South Carolina

$50.00

Tennessee

$15.00

Washington

$40.00 - $90.00

West Virginia

$30.00

Wisconsin

$20.00

Wyoming

$60.00
🔍

No results found

Showing 0 of 0 results

 

Get support

Still need a hand?

Pick the way that suits you — Anrok will take it from there.

Message our team Submit a request and get a reply from customer care, usually the same day. Check with Atlas Get instant answers about your data, the product, and sales tax compliance.